Employee or Independent Contractor: California's Take

Are you an employee or an independent contractor? If you're doing business in California, then pay attention to the new classification test for your workers.



After a recent case, Dynamex Operations West, Inc. v. Charles Lee, California courts ​may​ presume every worker qualifies as an employee. In order to rebut this presumption, business owners must prove:

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

For a look at the opinion in its entirety, check out this link.

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